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name of individual or entity, the amounts that had been either
invested in a "phantom CD" or withdrawn from a "phantom CD" and
redeposited into the party's account, with dates commencing
December 15, 1982, and ending November 3, 1988. By year, the CD
schedule indicates that Mr. Gherman had embezzled the following
net amounts (withdrawals from accounts of FIP's clients less
redeposits to accounts of FIP's clients) from FIP's clients as
part of the CD scheme:
Withdrawals Redeposits
from accounts to accounts Net
Year of FIP's clients of FIP's clients amount
1982 $1,480,000.00 -0- $1,480,000.00
1983 1,315,000.00 $685,000.00 630,000.00
1984 2,663,500.00 1,088,500.00 1,575,000.00
1985 1,726,162.52 565,000.00 1,161,162.52
1986 2,305,000.00 552,462.52 1,752,537.48
1987 3,794,500.00 2,086,000.00 1,708,500.00
1988 1,571,000.00 45,700.00 1,525,300.00
Total 14,855,162.52 5,022,662.52 9,832,500.00
Of the $1,525,300 net amount reflected on the CD schedule for
calendar year 1988, a total of $155,300 of the withdrawals and
redeposits were made on dates after Mr. Gherman fled the United
States.
The CD schedule was introduced in evidence during the 1988
bankruptcy proceeding. Respondent used the CD schedule to
develop the amounts reflected in the notices of deficiency as
having been embezzled from FIP's clients on a year-by-year basis.
See infra. The CD schedule was prepared from FIP's books and
records and from subpoenaed bank records.
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